Statement re: S.232 Decision on US Uranium Imports

15th July 2019

Yellow Cake plc ("Yellow Cake" or the "Company")

Statement re: Section 232 Decision on U.S. Uranium Imports 

Yellow Cake, a specialist company operating in the uranium sector with a view to holding physical uranium ("U3O8") for the long term, notes the decision by President Donald Trump to implement no new trade restrictions on uranium imports into the United States following the Section 232 investigation into the matter.

As part of the decision not to introduce new trade restrictions, the President also announced the establishment of a United States Nuclear Fuel Working Group. The Working Group will report back to the President within 90 days, and will examine the current state of US domestic nuclear fuel production to reinvigorate the entire nuclear fuel supply chain, consistent with United States national security and non-proliferation goals.

Andre Liebenberg, CEO of Yellow Cake, said:

"The Section 232 investigation has created an 18 month period of uncertainty which has severely restricted activity in the uranium market. We view the decision that no new trade restrictions will be implemented at this stage as positive, and likely to support a return to more normal levels of activity. We note the creation of a new Working Group which will look at the full nuclear fuel supply chain in the US and report back on its findings. We therefore expect a more measured return to market activity in the near term and remain highly confident in the long term price outlook for uranium, and therefore in the Yellow Cake investment model."

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) no 596/2014

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FORWARD LOOKING STATEMENTS

Certain statements contained herein are forward looking statements and are based on current expectations, estimates and projections about the potential returns of the Company and the industry and markets in which the Company will operate, the Directors' beliefs and assumptions made by the Directors. Words such as "expects", "anticipates", "should", "intends", "plans", "believes", "seeks", "estimates", "projects", "pipeline", "aims", "may", "targets", "would", "could" and variations of such words and similar expressions are intended to identify such forward looking statements and expectations. These statements are not guarantees of future performance or the ability to identify and consummate investments and involve certain risks, uncertainties and assumptions that are difficult to predict, qualify or quantify. Therefore, actual outcomes and results may differ materially from what is expressed in such forward looking statements or expectations. Among the factors that could cause actual results to differ materially are: uranium price volatility, difficulty in sourcing opportunities to buy or sell U3O8, foreign exchange rates, changes in political and economic conditions, competition from other energy sources, nuclear accident, loss of key personnel or termination of the services agreement with 308 Services Limited, changes in the legal or regulatory environment, insolvency of counterparties to the Company's material contracts or breach of such material contracts by such counterparties. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law or the AIM Rules.